Listed below are examples of unique circumstances and the Roy/Tedeschi/Schmidt Private Wealth Management Group appraoch
CASE STUDY #1
Client Profile: A widowed woman with a need for advice on a significant legacy portfolio. She had never managed her own portfolio, and assets were spread across a number of financial institutions.
Roy/Tedeschi/Schmidt Private Wealth Management Group Approach: Work closely with her accountant and attorney to consolidate assets under one roof. Simplify her financial affairs, step up cost basis, and properly register each asset in the appropriate accounts to minimize the tax impact. Restructure portfolio from a growth bias to a more conservative mix, appropriate for a single woman with income needs.
CASE STUDY #2
Client Profile: A 67-year-old woman with concentrated positions in a small number of inherited stocks
Roy/Tedeschi/Schmidt Private Wealth Management Group Approach: Work to diversify her holdings across a selection of active equity managers to minimize risk and manage tax impact upon disposition. Reconfigure portfolio to provide a stable monthly income check while also generating growth. Create a philanthropic plan using donor-advised funds, crafting a five-year gifting and major funds need calendar for planning purposes, and build a fixed-income maturity ladder to meet future objectives. Generate a monthly income from portfolio earnings which would provide financial independence as well as a travel budget to enable her to see the world.
CASE STUDY #3
Client Profile: A retired CEO of a public company seeking to diversify a concentrated stock position
Roy/Tedeschi/Schmidt Private Wealth Management Group Approach: Use a tax-efficient disposition plan and create a portfolio ultiziing multiple money managers, each with a specialty, in addition to developing a diversified municipal bond portfolio for tax-free income. Increase his portfolio cash flow, and transfer a fixed monthly amount to his local bank checking account to cover living expenses.
CASE STUDY #4
Client Profile: A young woman in her twenties with inherited assets in a concentrated position. Interest in purchasing and rehabilitating real estate.
Roy/Tedeschi/Schmidt Private Wealth Management Group Approach: Diversify assets away from a single stock position into multiple equity managers, and provide lending referrals for mortgages and lines of credit. Work closely with client’s tax accountant and bookkeeper in order to help achieve her financial goals.
CASE STUDY #5
Client Profile: A young professional couple with high annual income and a desire to save for retirement with limited but growing resources
Roy/Tedeschi/Schmidt Private Wealth Management Group Approach: Create a customized plan for retirement saving, establish 529 plans for their children’s college education, discuss a timeframe for purchasing and financing a vacation home, and consult on saving for a larger primary home for their growing family.
CASE STUDY #6
Client Profile: The trustee of a living trust designed to help generate income for an elderly sibling living within a life-care facility
Roy/Tedeschi/Schmidt Private Wealth Management Group Approach: Properly register assets for estate investment planning/asset preservation purposes and restructure the portfolio to be appropriate for an investor who has a low risk tolerance, requires monthly distributions as well as regular contact with the trustee.
The Roy/Tedeschi/Schmidt Private Wealth Management Group Approaches discussed may not be suitable for your personal situation, even if it is similar to the example presented. Investors should make their own decisions based on their specific investment objectives and financial circumstances. It should not be assumed that the approach discussed in these situations achieved any of the goals mentioned. These examples are hypothetical and do not represent any specific investments or strategies. Advisory programs are not designed for excessively traded or inactive accounts and may not be suitable for all investors. We need to review your investment objectives, risk tolerance and liquidity needs before we introduce suitable managers/investment programs to you. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services.
Investments in fixed-income securities are subject to market, interest rate, credit and other risks. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline in the bond’s price. Credit risk is the risk that an issuer will default on payments of interest and/or principal. This risk is heightened in lower rated bonds. If sold prior to maturity, fixed income securities are subject to market risk. All fixed income investments may be worth less than their original cost upon redemption or maturity. Bond laddering does not assure a profit or protect against loss in a declining market.
Income from municipal securities is generally free from federal taxes and state taxes for residents of the issuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income for some investors may be subject to the federal Alternative Minimum Tax (AMT).